Thursday, May 31, 2012

DAX will FLAG and /or H&S targets be met?

DAX 3 hr charts

On 15/5 DAX broke down through support at 6420, which could also be construed as the neckline of a Head and Shoulders formation with a target near 5850.

Since May 16th DAX has been range bound 6220 to 6430.

Which way will it break?

Scenario 1 FLAG target at 6035
Scenario 2 Head and shoulders target at 5850
Scenario 3  market rallies from the consolidation, invalidating both of the above.

Rangebound action doesn't favour Head and shoulders normally more impulsive once the neckline is broken and retested.

1 comment:

Total Pageviews